1. Technical Field
The present invention is directed to a system and method for early detection and prevention of identity theft. More specifically, the present invention is directed to authorizing use of a person's identity based on a correspondence between a registered mobile device and the location at which the identity is attempting to be used.
2. Description of Related Art
Identity theft is an increasing problem in the information age. Since information is readily accessible via computer networks, persons wishing to obtain certain benefits by using another person's identity can easily obtain the information they need to assume the person's identity, e.g., social security number, account numbers, addresses, telephone numbers, driver's license numbers, passwords, personal identification numbers (PINs), and the like.
This is especially a problem in the area of credit card services and lines of credit. For example, it is possible for persons to create new lines of credit with an existing identity to develop new sources of funding. Thus, measures have been taken to attempt to authenticate the users in order to avoid identity theft. These measures, however, have various problems that make them less than perfect solutions to the problem.
One approach to preventing identity theft is to encrypt a PIN on the credit or bank card issued to a user and inform only the authorized user of the PIN. This solution does not provide adequate security since it is only necessary for an identity thief to view the authorized user entering the PIN during normal use in order to obtain the PIN and then use it with a stolen or counterfeit card to obtain access to the authorized user's account.
Moreover, if an identity thief obtains necessary identity information of another person, the identity thief may apply for a credit or bank card using the other person's identity and be provided with his/her own account and PIN using the other person's identity. In this case, encrypting of the PIN provides little if any security.
Another approach to preventing identity theft is to have a picture of the authorized user printed on the credit or bank card. This picture is provided to the credit or bank card issuing company by the authorized user and is intended to allow a cashier, merchant, or the like, to authenticate the user by comparing the picture on the credit card to the user attempting to use the card. While this approach theoretically will minimize use of stolen credit and bank cards, in actuality many cashiers, merchants, and the like pay very little attention to the credit or bank card when performing a transaction and thus, the purpose of the incorporated picture is not achieved. Moreover, this still does not prevent an identity thief from using another person's identity to apply for his/her own credit or bank card having his/her own picture on it but with the name of the person whose identity has been stolen.
Other approaches include using biometric information, complex or lengthy password sequences, and the like. None of these other approaches provide an adequate protection against identity theft. The use of biometric information as a safeguard requires new or additional hardware that is typically expensive. Merchants are less likely to invest in expensive hardware to protect customers against identity theft when the merchant is not bearing the burden of the consequences of identity theft. The use of complex passwords is susceptible to theft in the same way as PINs and other passwords and simply make it less likely for an identity thief to “guess” the password. Moreover, the more complex the password, the less likely the authorized user is going to be able to remember the password.
Thus, there is a need for a system and method to detect and prevent identity theft at an early stage before an identity thief is able to make use of the stolen identity. Moreover, there is a need for a system and method that notifies the authorized user of the identity when a non-authorized user is attempting to make use of the identity.